Porsche, Ally Line-up $1.5B in Prime Auto ABS

Over $1.5 billion in securities backed by prime auto loans were added to the new issue pipeline this week via deals being market by Porsche and Ally Bank, according to Standard & Poor's presale reports.

Porsche plans to issue $488.3 million of notes backed by prime auto loan receivable via Financial Auto Securitization Trust 2014-1. S&P expects assign AAA’ ratings to $344.2 million of these notes offered under Also on offer is a $144 million money market tranche that S&P expects to rate A-1+’.

Barclays Capital is the lead underwriter on the deal, which is backed by 11,721 prime auto loan contracts made to purchase Porsche, Bentley, and Lamborghini automobiles, with an aggregate outstanding balance of $507.87 million.

The pool’s weighted average FICO score of 781 “is one of the highest compared to peer pools,” according to the presale report.

The trust will issue $1 billion of securities with preliminary AAA’ ratings; S&P will not rate the three subordinate tranches totalling $66 million.

The last Ally transaction rated by S&P was the AART 2013-1 transaction. According to the presale report the current deal has a greater percentage of loans with original maturities of 61-75 months, 64.9%, compared with 58.9% for the 2013-1 deal.

The current pool's weighted average seasoning has also increased slightly, to 11.1 months from 10.8 months in the 2013-1 pool. Used vehicle loans also make up a greater percentage of the current pool at 24.8% versus 19.6% in 2013-1.

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